Selling Your Home - Property Taxes

Where can I learn more about appealing my property taxes?Contact
your local tax assessor's office to see what procedures to follow to appeal your
property tax assessment. You may be able to appeal your assessment informally.
Mostly likely, however, you will have to go through a formal tax-appeal
processes, which begin with an appeal filed with the appropriate assessment
appeals board.

How is a home's value determined?You have
several ways to determine the value of a home. An appraisal is a professional
estimate of a property's market value, based on recent sales of comparable
properties, location, square footage and construction quality. This service
varies in cost depending on the price of the home. On average, an appraisal
costs about $300 for a $250,000 house. A comparative market analysis is an
informal estimate of market value performed by a real estate agent based on
similar sales and property attributes. Most agents offer free analyses in the
hopes of winning your business. You also can get a comparable sales report for a
fee from private companies that specialize in real estate data or find
comparable sales information available on various real estate Internet
sites.

Are taxes on second homes deductible?Mortgage interest
and property taxes are deductible on a second home if you itemize. Check with
your accountant or tax adviser for specifics.

How do property taxes
work?Property taxes are what most homeowners in the United States pay
for the privilege of owning a piece of real estate, on average 1.5 percent of
the property's current market value. These annual local assessments by county or
local authorities help pay for public services and are calculated using a
variety of formulas.

Are property taxes deductible?Property
taxes on all real estate, including those levied by state and local governments
and school districts, are fully deductible against current income
taxes.

What is an impound account?An impound account is a
trust account established by the lender to hold money to pay for real estate
taxes, and mortgage and homeowners insurance premiums as they are received each
month.